Retirement

Changing the “promise” of Social Security-what’s new?

Tax

Tax (Photo credit: 401K)

Today we battle over any changes to Social Security even those that do not impact current benefits or current beneficiaries. Even the mention of a future change in the method of calculating a COLA generates a claim of benefit reductions.

“I earned my benefits.” “I paid for my own Social Security.” “I’m entitled.” are all familiar cries of injustice.

All this nonsense in 2012 and yet in 1983 Congress made a major change in Social Security far more negative than what is being discussed today. Effective in 1984 up to 85% of the Social Security benefit was made taxable income for federal taxes. Talk about a cut in your take home pay. To make matters worse, the income level driving this taxation was not indexed for inflation.

And you get excited if the COLA in the future is less by a fraction of a percentage.

Read more about the taxation of Social Security here.

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2 replies »

  1. every time the right starts talking about SS changes, the left jumps in to vilify the right. WHY does the right ALWAYS fall for this !! they let the left define the conversation and go on the defensive against what the left SAYS we are doing . We need to stay on topic and point and explain in OUR terms what we are considering. why do Reps. always think they have to defend their position. Especially when they don’t even maintain their position but let the Libs define for them.

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